U.S.-China Solar-Products Dispute Heats Up

Updated June 4, 2014 2:59 a.m. ET

BEIJING—China warned Wednesday that a preliminary U.S. decision to close a loophole that allowed some Chinese solar-equipment makers to avoid tariffs would worsen trade relations between the two countries.

Solar-energy products became a flashpoint in trade relations between China, the U.S. and the European Union as the global financial crisis slowed the implementation of big solar-energy projects just as production capacity for solar...